08-09-2013, 11:47 PM
Then you have some of the hard facts that make up petroleum deals. The average petroleum deal is made up of some 130 different contracts between all of the groups involved. And we know that the LNG contracts are some of the most complicated, and contracts with the government(s) involved are not far behind. We know that these discussions involve the PNG government because both IOC/Exxon and the PNG government (outside of in-the-dark Duma) have acknowledged that they have had many discussions with the government. To expect all of this to happen in 30 or even 60 days is a bit unrealistic. When Exxon bought XTO Energy the decision to approach XTO was made in July and the deal was announced in December. Both Exxon and XTO were (are as XTO is now a subsidary of XOM), US based fortune 500 companies.
The fact that Exxon stated that the major terms have already been agreed to is huge as for them to say anything regarding a negotiation process takes many levels of approval. But it doesn't necessarily mean all formal contracts have been worked through and finalized by ALL necessary parties. I'd love for this to be done yesterday, but I know that's very unrealistic when you understand the complexity of these deals and ALL of the parties involved.
The fact that Exxon stated that the major terms have already been agreed to is huge as for them to say anything regarding a negotiation process takes many levels of approval. But it doesn't necessarily mean all formal contracts have been worked through and finalized by ALL necessary parties. I'd love for this to be done yesterday, but I know that's very unrealistic when you understand the complexity of these deals and ALL of the parties involved.